The Perodua Suppliers Association (formerly known as the Perodua Vendor’s Club) are more than happy with P2’s performance despite the pessimistic outlook of the automotive industry.
Looking at the company’s performance in the first four months of 2019, they’re confident that the 231,000 target will he hit this year.
For more details, the press release has more:
PRESS RELEASE:
The Perodua Suppliers Association (P2SA) is highly encouraged by Perodua’s sales growth of 9.5% to 82,700 vehicles in the first four months of 2019 from 75,500 vehicles in the same period last year – a strong indication that the compact carmaker will reach its 231,000-unit target by the end of the year.
“As the representative for all 125 automotive component suppliers to Perodua, this outlook works well for the ecosystem, despite the pessimistic outlook of the automotive industry in general,” said P2SA President En Musa Zahidin Tan Sri Ahmad Zaidee.
In recent media statements, Perodua announced a sales target of 231,000 vehicles for 2019, a 1.7% jump from the 227,243 units sold in 2018. The company also announced its commitment to buy at least RM5.4 billion worth of components in 2019 based on its sales target.
“This growth is phenomenal as the industry only grew about 6% for the period January-April 2018 versus 2019, based on our internal figures.
“In absolute numbers, based on our estimations, the industry grew to 193,200 units for the first four months of this year from 182,200 in the same period last year – an 11,000-unit increase.
“To put this into perspective, in said period, Perodua sold 7,300 cars more than it did last year, which means most of the industry’s growth came from Perodua,” En Musa said during the P2SA Annual General Meeting recently.
En Musa said that so far, Perodua has been highly committed towards the health of the domestic automotive ecosystem as its models all have over 90% local content on average.
He said that aside from the RM5.4 billion component purchase guarantee by Perodua this year, Perodua also assists P2SA members in driving operational transformation.
“We are very grateful for Perodua’s strong commitment towards providing affordable yet high-quality mobility to all Malaysians while at the same time continuously giving back to the automotive industry by developing the
local supplier support system under its many programmes.
“A prime example of how Perodua assists and supports local suppliers is its investment in the mould and tooling requirements, which has reduced the overall financing costs for our members. This began when the Perodua Axia started production in 2014 and has been done for every other model since,” En Musa said.
Under this initiative, Perodua would purchase upfront the required moulds and tooling from the respective manufacturers for the suppliers to use to make components. The suppliers could then adjust their production costs as they no longer have to acquire financing to purchase the moulds and tooling.
“We are also thankful to Perodua because they have never charged for the moulds and tooling, and their volume commitment is always honoured.
“P2SA is confident that Perodua will be able to develop and strengthen Malaysia’s automotive ecosystem based on its shared growth plan,” En Musa added.
